A firm sells goods at cost + 25%. What is the ratio of gross profit on sales? MCQ with Answer and Explanation

Explanation:
The Purchases Book only records credit purchases of trading goods. Credit purchases of assets are recorded in the Journal Proper.

Explanation:
Bills Receivable Book records all bills of exchange drawn on debtors and accepted by them.

Explanation:
Interest on drawings is an appropriation of profit in sole proprietorship? Actually in sole proprietorship, drawings are not subject to interest unless specifically decided for managerial accounting. But in financial accounting for sole traders, interest on drawings is not charged to P&L. It reduces capital directly if considered. So it does not affect net profit. Others affect P&L.